Thailand: SCG arm bullish on 2018 logistics outlook
SCG Cement-Building Materials, the construction products subsidiary of SCG Group, expects its revenue to increase by 10% year-on-year to 17 billion baht in 2018, driven by demand growth in e-commerce, government investment projects and strong economic performance by Asean countries, said vice-president Nithi Patarachoke.
Nithi: State projects will help revenue
SCG Logistics, a subsidiary of SCG Cement-Building Materials, operates in eight industries in Thailand and Asean. SCG Logistics’s revenue grew 7% to 16 billion baht in 2017. Last year the company managed 1.7 million shipments containing 3.6 tonnes of goods.
“Government projects like the Eastern Economic Corridor [EEC] will fuel growth in the logistics industry, and in SCG Logistics,” he said.
Thailand’s business-to-business logistics market is worth 1 trillion baht; the business-to-consumer logistics market is worth 20-30 billion baht, said Mr Nithi.
This year the company plans to invest 1 billion baht to expand its logistics service in Thailand and Asean.
SCG wants to expand its customer base by introducing new services, like golf bag delivery, and the farm-to-table project, which will transport agricultural products from local farmers to cities, in line with government schemes like the Eastern Fruit Corridor.
SCG Logistics plans to provide full service coverage nationwide by mid-year.
The company will continue expanding thanks to the rise of e-commerce and the healthy economies in the region, said Paitoon Jiranantarat, managing director of SCG Logistics.
“China’s One Belt One Road project and the EEC are key factors driving our logistics business at the moment,” he said.
The company aims to expand into China and expand its distribution centres and truck stations in Thailand and Asean to meet growing market demand.